COMMISSIONER OF INCOME TAX Vs. NADAR PRESS LIMITED

JUDGEMENT

(1.) THE question in this case is about a deduction granted by the Income-tax Appellate Tribunal for an item of expenditure in the computation of business profits.

(2.) NORMALLY, questions of this kind, although briefly worded, m would give us an idea of the nature of the controversy. Not so in this case. The question does not tell us what it is about. All it asks us to decide is :

(3.) IN this reference at the instance of the INcome-tax Department, the wisdom of the Tribunal's decision is questioned. Mr. Jayaram, the Department's standing counsel, wondered whether there was any element of commercial expediency in the payment of Rs. 63,880 which the assessee distributed to its workers. Learned counsel said that it was quite odd that a considerable sum should have been given away, just like that, for practically nothing on the basis of a mere paper retrenchment and a make-believe re-employment.